Lagarde warns of inflation risks from trade tensions

Christine Lagarde, president of the European Central Bank, expressed concerns about high uncertainty in the economy as Europe plans to impose tariffs on $22 billion of U.S. goods. This is in response to U.S. tariffs on steel and aluminum. Lagarde stated it is "impossible" to ensure a 2% inflation target in the short term due to global volatility. European markets showed some recovery, with the FTSE 100 index rising 0.5% after earlier declines. U.S. President Donald Trump threatened to escalate the trade war with further tariffs. Wall Street experienced volatile trading, but stocks gained after lower-than-expected U.S. inflation figures were released.